All Forum Posts by: Brandon Croucier

That is tight leverage for an investment 2nd position loan.

A private investor might be willing to do it, it's not going to be cheap at all & will be short-term money & will not be a line of credit to take out at your liking.

What is your rate on the 1st? It might be a better decision to do a 75% Cashout Refinance.

Hi Matt,

If you're just getting started in flipping you will end up wasting days, weeks or even months of your time trying to find extremely high leverage.

Long story short it isn't going to happen for you at this point.

You need to bring some cash into the deal.

20% + Closing Costs + Reserves.

Once you get a good amount of flips under your belt, then many will consider you for higher leverage up to 90% + 100%

The hard part about is the financing, are you looking to finance it?

If so you need to fall into the guidelines (for the investor whos funding it) regarding non arms length transactions.

The most common scenarios they typically prohibit are:

- Gifts of Equity

- Bailouts

- Leaseback Options

At the end of the day it needs to be a legitimate transaction, with legitimate funds coming into close.

You're in the right spot, plenty of reputable DSCR lenders here on bigger pockets!

Is the subject property going to be a long term rental or a short term rental ?

 If it's on your credit, you are on the hook for it.

However, it shouldn't effect the loan process too much, a simple Letter Of Explanation should be able to get the job done with the correct investor. 

The best way to get this done is via a DSCR Cashout Refinance, it is going to offer you the best pricing on the loan amount.

It is only a bad idea if you think it is!

This is going to vary significantly depending on numerous factors.

Always happy to connect 

Hey Bruce,

I recommend working with an experienced DSCR Broker who knows the ins and outs of the industry to guide you in to the right product and pricing for you.

Hey Troy!

Congrats on finishing up the rehab, as others have mentioned, make sure to document your work.

Keep the invoices handy. Provide the scope of work done to the appraiser.

All you can do is your best, so make it nice and pretty for that appraiser.

Especially if you are looking to cash out refinance shortly here.